Reimbursement a reasonable solution

Published: Friday, September 28, 2012 at 05:33 PM.

There is, however, also a case to be made that malpractice awards should be subject to a recovery for state-paid Medicaid expenditures. There should be limits — nobody is suggesting that the state profit from someone else’s suffering. Reimbursement of some of the compensatory damages to the people who actually paid the bills doesn’t seem unreasonable, however, and the court should recognize the validity of that requirement.

Although one side eventually will prevail, there won’t be any real winner or loser when the U.S. Supreme Court takes a look at a North Carolina law that allows the state to recoup money spent on patients by appropriating a portion of the money recovered through a medical malpractice lawsuit.

The family of a baby girl who was born with serious and debilitating injuries leaving her both blind and deaf says that their daughter — who is also mentally impaired and incapable of independent sitting, walking or speaking — should not have to pay one-third of the settlement obtained by her parents on her behalf to the State of North Carolina.

The $2.8 million settlement was reached in 2006 when the lawsuit was settled in favor of Sandra and William Armstrong, whose child was born in Hickory on Feb. 25, 2000.

Under state law, the North Carolina Department of Health and Human Services can recoup some of the money it paid out on behalf of the Armstrong child by laying claim to part of the malpractice settlement. In this case, the government, through its Medicaid program, expended nearly $2 million for the child’s medical care. If the law is upheld, the state will receive just over $900,000 in repayment.

However, the Armstrong family has appealed the state’s right to take the money. The appeal is based on grounds that the law is too broad. Several other states have similar laws.

Medical reimbursement in such cases is fairly standard practice, and the ruling by the Supreme Court could send legislators back to the drawing board, looking for a more ironclad way to reimburse the state for some of the money paid in Medicaid expenses.

No one blames the Armstrong family for fighting on behalf of their child: According to reports, she requires anywhere from 12 to 18 hours of skilled nursing care each day. That is expensive, as are the equipment and medications she needs.

There is, however, also a case to be made that malpractice awards should be subject to a recovery for state-paid Medicaid expenditures. There should be limits — nobody is suggesting that the state profit from someone else’s suffering. Reimbursement of some of the compensatory damages to the people who actually paid the bills doesn’t seem unreasonable, however, and the court should recognize the validity of that requirement.